Standoff in the Bay of Bengal

http://www.isn.ethz.ch/isn/Current-Affairs/Security-Watch/Detail/?ots591=4888CAA0-B3DB-1461-98B9-E20E7B9C13D4&lng=en&id=93998

Tensions are palpable as Burma and Bangladesh face off over rights to a resource-rich piece of the Bay of Bengal, and their neighbors watch and wait, Animesh Roul writes for ISN Security Watch.

By Animesh Roul in New Delhi for ISN Security Watch


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In reaction to a move seen as an encroachment on its territory, Bangladesh deployed warships and land forces along its border with Burma (Myanmar) in early November over the latter's bid to explore oil and gas in a disputed maritime zone in the Bay of Bengal, creating the first major naval deployment in the bay over offshore oil and gas rights since 1972.

Myanmar has dismissed Bangladesh's claims on this oil-rich area as "unlawful" and vowed to continue exploration. Tensions have been relatively eased as Dhaka called back its frigates and Myanmar temporarily halted activities in the area. However, despite Dhaka’s multi-pronged diplomatic efforts involving China and South Korea, the stand-off remains unresolved.

Still worse, an inconclusive round of bilateral talks in Myanmar's new capital, Naypyidaw, to settle the controversy has triggered both sides to deploy troops along the border near Myanmar's Rakhain state.


Bangladesh claims that Myanmar’s exploration activities impinged on its right to the Exclusive Economic Zone (EEZ) and the continental shelf, as accorded by the UN’s Law of the Sea (UNCLOS). On the other hand, Dhaka itself has yet to complete the delimitation of its maritime boundary accordingly. Its littoral neighbors and legitimate claimants of the Bay, India and Myanmar, found significant amounts of hydrocarbons in 2005-2006 and demarcated their respective offshore gas fields as per the "equidistant" principle. In some areas, these demarcations overlap Bangladesh’s share of the bay's gas fields.

Under UNCLOS, India and Myanmar must complete the demarcation process by 2009, where as Bangladesh has until 2011.

The ongoing face-off is not an isolated event. On earlier occasions, Myanmar’s naval forces blocked Bangladesh’s efforts to survey in the EEZ. To ward off any such future maritime aggression and protect its only mineral-rich maritime territory, the impoverished and politically unstable Dhaka has begun modernizing its naval force in recent years, putting many domestic priorities at stake.

Myanmar’s recent overtures certainly have heightened the risk of war between otherwise friendly Asian nations, very often overwhelmed by a spurt of bilateral ambitious project agreements. However, all bonhomie seems to be marred by this long-standing maritime boundary dispute.

Observers also speculate that Myanmar's junta may postpone many projects relating to border trade and infrastructure with Bangladesh due to the dispute.

India, the largest of the three littoral countries, has remained mute on the dispute between its neighbors, perhaps due to the past experience. Bangladesh and India had problems earlier concerning the exploration of deepwater blocks. Dhaka protested against New Delhi’s alleged encroachment and allotment of gas blocks for exploration under its New Exploration Licensing Policy (NELP) in 2006. Mahmudur Rahman, a former energy adviser to the Bangladeshi government, claimed that both Myanmar and India had encroached 18,000 and 19,000 sq km, respectively, into Bangladesh’s territorial waters. India and Myanmar denied the claim.

Understandably, the resource- rich Bay of Bengal has re-emerged as a theater of conflict, as littoral countries are increasingly engaged in harvesting hydrocarbons unilaterally: This is bound to trigger tension. Myanmar leased the present zone of contention, Block No AD-7, to South Korea's Daewoo International Corp in 2005. The company started explorations in the area in September but South Korea reportedly called it back following Bangladesh’s protest.

China intervened to defuse the latest tension, but remains elusive in terms of the overall controversy, preferring to wait and watch. Myanmar is a storehouse of oil, gas and other natural resources, which the junta exchanges for military aid. These resource revenues form the backbone of country’s economic security. Furthermore, Myanmar has already entered into agreements to export gas to China and India, but surprisingly, not with Bangladesh yet.

Despite the deadlock, diplomatic maneuvers continue. Foreign Ministry representatives from both Myanmar and Bangladesh met on the sidelines of the Bay of Bengal Initiative for MultiSectoral Technical and Economic Cooperation conference in New Delhi last week and agreed to carry forward dialogues to reach an amicable solution. The latest round of bilateral talks between Dhaka and Naypyidaw on 16-17 November ended inconclusively. The next round is scheduled for January.

Always at a receiving end, Bangladesh must trust India and Myanmar while mutually agreeing to draw the maritime boundary in the bay. It is imperative that all parties who have stakes on the bay waters, including India, engage in meaningful dialogue to resolve the maritime boundary issue equitably and more importantly, amicably, in order to avoid upsetting shaky regional stability.



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Animesh Roul is a senior correspondent for ISN Security Watch based in New Delhi.


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The views and opinions expressed herein are those of the author only, not the International Relations and Security Network (ISN).


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International Relations and Security Network (ISN)